"As a barometer of US industrial and corporate economic health, the S&P 500 Index has few equals. Over the past decade, less than 15% of professional large-cap fund managers have been able to surpass the performance of the S&P 500. In fact, no less an investing authority than Warren Buffett cited in the 2013 Berkshire Hathaway shareholder letter: " The goal of the non-professional should not be to pick winners...instead, seek to own a cross-section of businesses that in aggregate are bound to do well. An S&P 500 index fund will achieve this goal.""
""One bequest provides that cash will be delivered to a trustee for my wife's benefit.... My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors - whether pension funds, institutions or individuals - who employ high-fee managers.""
The S&P 500 Index serves as a key barometer of US industrial and corporate economic health and has outperformed most active large-cap managers over the past decade. Fewer than 15% of professional large-cap fund managers have surpassed the S&P 500 in that period. Warren Buffett endorses broad S&P 500 index ownership and recommends a trust allocation of 10% short-term government bonds and 90% in a low-cost S&P 500 index fund for superior long-term results. Vanguard's S&P 500 ETF (VOO) is highlighted, and Vanguard founder John Bogle expressed reservations about ETFs despite his role in popularizing index funds. VOO experienced a brief correction tied to tariff announcements, then resumed a bullish trend beginning in 2023.
Read at 24/7 Wall St.
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